Brokers report increase in demand for 35-year mortgage terms

by Aaron Strutt

Oct 16 2017

Nearly seven in ten brokers have reported an increase in demand from borrowers looking for 35-year mortgage terms. This is according to the Intermediary Mortgage Lender Association (IMLA).

IMLA’s research highlighted that 13% of brokers reported a “substantial” increase for longer mortgage terms in the first six months of 2017. It also said these figures were an “inevitable consequence” of low wage growth and high house prices.

Peter Williams, executive director of IMLA, said: “The Prudential Regulation Authority recently raised concerns about longer-term mortgages and their negative impacts. In reality, around a third of first-time buyers take out a mortgage with a term of over 30 years, and most of these are for less than 35 years.

“With many borrowers struggling to make homeownership a reality, it is recognised that the growing recourse to longer-term mortgages could impact upon people’s capacity to save for retirement albeit this is offset to a degree by the purchase of a property asset.”

Lenders offering 35 and 40-year mortgage terms

Trinity Financial has access to a host of lenders offering longer terms to help borrowers secure the loan size they require.

Halifax, Nationwide Building Society and Clydesdale Bank offer mortgage terms of up to 40 years. While NatWest and Virgin Money cap their mortgage terms at 35-years.

Call Trinity Financial on 020 7016 0790 to secure a first-time buyer mortgage